Lesetja Kganyago: South Africa's institutional landscape, the exchange rate and competitiveness, and financial stability

Address by Mr Lesetja Kganyago, Governor of the South African Reserve Bank, at the Annual Convention of the South African Chamber of Commerce and Industry (SACCI), Johannesburg, 20 October 2016.

Distinguished guests, ladies and gentlemen.

Thank you for the opportunity to address the annual convention of SACCI. The theme of institutions and competitiveness is particularly apt in today's economic and political environment. Strong and sound institutions are essential for the smooth functioning of society, as they prescribe the behaviour of individuals, and set out the "rules of the game". Well-functioning institutions are what investors look for when making long-term decisions to invest in a country. Institutions and the institutional framework are generated over time through interactions in society in general, and are dynamic and endogenous. In other words, they change over time and can be expected to both affect, and be affected by, the current political and economic dispensation. Furthermore, institutional arrangements in society are often self-perpetuating with strong institutions creating incentives for further institutional improvements and vice versa. But their dynamic nature means that we cannot be complacent, and we have to resist attempts to undermine strong institutions.